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CanGEACanGEA CanadianCanadian GeothermalGeothermal EnergyEnergy AssociationAssociation

CraigCraig Dunn,Dunn, P.GeolP.Geol OutreachOutreach && MembershipMembership DirectorDirector UnderstandingUnderstanding GeothermalGeothermal

► CrucialCrucial variablesvariables toto successfulsuccessful developmentdevelopment ► HeatHeat (resource)(resource) ► WaterWater (medium)(medium) ► Flow/PermeabilityFlow/Permeability ► NeedNeed toto understandunderstand allall variables;variables; lotslots ofof researchresearch forfor CanadianCanadian resourceresource ► RecentRecent developments:developments: EnhancedEnhanced GeothermalGeothermal SystemsSystems oror EGSEGS GeothermalGeothermal !Energy!

► Renewable,Renewable, reliablereliable sourcesource ofof electricityelectricity andand heatheat ► GeothermalGeothermal powerpower sourcessources produceproduce longlong termterm revenuesrevenues withwith nono fuelfuel costscosts andand nearnear zerozero emissions.emissions. ► SmallSmall environmentalenvironmental footprintfootprint comparedcompared toto otherother powerpower sourcessources ► GeothermalGeothermal powerpower plantsplants cancan continuouslycontinuously deliverdeliver powerpower withwith >95%>95% capacitycapacity ► PreferredPreferred choicechoice ofof renewablerenewable energyenergy forfor manymany utilitiesutilities

► HIGHHIGH RISKRISK toto developdevelop Resource!Resource! From Earth’s Heat Energy to Production CURRENTCURRENT STATESTATE OFOF GEOTHERMALGEOTHERMAL INDUSTRYINDUSTRY ININ CANADA?CANADA? CanadiansCanadians EverywhereEverywhere

►►MajorMajor resourceresource tradingtrading partner;partner; keykey suppliersupplier ofof energyenergy toto NorthNorth AmericaAmerica ►►CanadianCanadian geothermalgeothermal influenceinfluence ƒƒ CompaniesCompanies (TSX(TSX--V:V: SGP,SGP, WesternWestern Geopower,Geopower, Polaris,Polaris, NGP...)NGP...) ƒƒ ScientistsScientists andand researchersresearchers ƒƒ InvestmentInvestment CommunityCommunity (Jacob(Jacob && Company,Company, Dundee)Dundee) ►►WorkingWorking forfor geothermalgeothermal worldwide,worldwide, needneed toto bringbring thethe knowledgeknowledge resourceresource homehome CanadianCanadian EnergyEnergy Potential?Potential?

► 00 MW:MW: IndustryIndustry needsneeds jumpstartjumpstart ► NumerousNumerous estimatesestimates ofof MWMW potentialpotential ► NeedNeed unbiasedunbiased heatheat resourceresource numbernumber fromfrom respectedrespected thirdthird partyparty (GSC,(GSC, BCBC EMPREMPR……)) ► 1 MW would supply 800 Canadian homes Electricity/ProjectElectricity/Project PotentialPotential ► MeagerMeager CreekCreek-- 300MW?300MW? ► PebblePebble CreekCreek--Mt.Mt. CayleyCayley ► CanoeCanoe HotSpringsHotSprings ► HarrisonHarrison HotHot springssprings ► MiningMining OpportunitiesOpportunities ► OilOil && GasGas ApplicationsApplications ► GeneralGeneral estimatesestimates from geothermal notnot helpfulhelpful forfor resources is officially classified by Natural individualindividual projectproject Resources Canada as a 'renewable' energy, meaning that they operate without financingfinancing destroying finite natural resources. From Earth’s Heat Energy to Electricity Production BRINGINGBRINGING GEOTHERMALGEOTHERMAL TOTO CANADACANADA BuildingBuilding CriticalCritical MassMass

► ReRe--vitalizationvitalization ofof CanGEA:CanGEA: MajorMajor corporatecorporate industryindustry involvementinvolvement includingincluding geothermal,geothermal, oiloil && gasgas companiescompanies andand renewedrenewed interestinterest inin renewablerenewable energyenergy ► AA comingcoming togethertogether ofof industry,industry, academia,academia, governmentgovernment andand grassrootsgrassroots program:program: IndividualsIndividuals andand volunteersvolunteers

► NeedNeed SIGNIFICANTSIGNIFICANT assistanceassistance toto movemove industryindustry forwardforward inin CanadianCanadian marketmarket StartsStarts withwith ResearchResearch

► University of British Columbia: ƒ Yellowknife & Sudbury (abandoned mines)

ƒ 4 MWt greenhouse project ƒ BC EMPR Waste water potential ƒ EGS Research ► Queen’s co-production research (oil & gas field thermal waters)

► Database accumulation (BC Hydro, BC EMPR, CanGEA, GSC)

► GSC data review: Dr. Jessop ► EGS Study for Alberta: Dr.Moore, Dr. Majorwicz with Alberta Energy Research Institute

► Company exploration programs in BC, Alberta and Yukon

► International Policy Review – CanGEA/WellDunn

FollowFollow WorldwideWorldwide LeadLead

► >3,000>3,000 MWMW inin USUS MarketMarket ► ,Iceland, ItalyItaly ► LeadersLeaders-- Australia,Australia, Germany,Germany, NewNew ZealandZealand ► ProvenProven TechnologyTechnology OpportunityOpportunity toto learnlearn fromfrom otherother countriescountries andand theirtheir successfulsuccessful geothermalgeothermal policiespolicies IndustryIndustry development:development: ExampleExample --AustraliaAustralia

39 companies have applied for 347 licences covering >257,000 km2 in Australia 10 ASX-listed Hot Rock Companies programs (2002-13) worth A$996 million Australian Governments have committed > $100 million for research and demonstration since 2000 Geothermal Industry Development Framework and Roadmap in progress Cost Benefit Analysis – 1:15 Every dollar that government puts in earns royalties and taxes of $15 over 10 years From Earth’s Heat Energy to Electricity Production WHATWHAT DOESDOES INDUSTRYINDUSTRY NEED?NEED? ProgramProgram forfor SuccessSuccess

► ReduceReduce RISK:RISK: Financial/Drilling/ProjectFinancial/Drilling/Project ► CentralCentral databasedatabase ofof existingexisting datadata ƒ Mining & Oil and Gas ƒ BC EMPR, BC Hydro, GSC.... ƒ Private information ƒ University research ► GISGIS basedbased mappingmapping programsprograms ► FieldField researchresearch (mapping,(mapping, sampling)sampling) ► GeophysicsGeophysics ► ContinueContinue developingdeveloping drilling/subsurfacedrilling/subsurface datasetdataset ► Training/educationTraining/education forfor nextnext generationgeneration FacilitateFacilitate ExplorationExploration ResearchResearch

► StartsStarts atat aa deskdesk (with(with aa phonephone && computer)computer) ► NeedNeed toto locatelocate asas muchmuch datadata asas possiblepossible priorprior toto anyany seriousserious considerationconsideration ► BCBC HydroHydro reports,reports, satellitesatellite imagery,imagery, GSCGSC miningmining information,information, fieldfield mappingmapping etc.etc. ► StartStart toto putput aa picturepicture togethertogether ► CanadianCanadian datasetdataset notnot centralizedcentralized ► DigitalDigital databasedatabase wouldwould facilitatefacilitate researchresearch andand lowerlower costs:costs: REDUCINGREDUCING RISKRISK GISGIS MappingMapping

► NewNew ageage inin mappingmapping technologytechnology

► GeographicGeographic InformationInformation SystemSystem (GIS)(GIS)

► LayerLayer systemsystem (BC(BC EMPR:EMPR: mining,mining, oiloil && gas)gas)

► ImportImport datasetsdatasets (ARC(ARC oror shpshp files)files)

ƒ Well data (temp grad, locations) ƒ Geology (faults, lithology) ƒ Infrastructure (transmission, roads, towns...) ► AllowsAllows explorationexploration geologistsgeologists toto seesee thethe patternspatterns

NecessaryNecessary FieldField ResearchResearch

► TemperatureTemperature gradientgradient datadata ► ExplorationExploration forfor hothot water/hotwater/hot springssprings ► WaterWater chemistrychemistry && geothermometrygeothermometry ► SurfaceSurface geochemistrygeochemistry ► GeologicalGeological mappingmapping (lithology,(lithology, alterationalteration && structural)structural) ► FundamentalFundamental inin bringingbringing necessarynecessary informationinformation toto industryindustry ► 19801980’’ss GSCGSC geothermalgeothermal fundingfunding terminated:terminated: BRINGBRING ITIT BACKBACK GeophysicsGeophysics ProgramProgram

►►TechniquesTechniques cancan helphelp usus determinedetermine ƒƒ ReservoirReservoir structurestructure

ƒƒ ChangeChange inin lithologylithology ► ActiveActive && PassivePassive SeismicSeismic @@ depthdepth ► InfraredInfrared ƒƒ HeatHeat flowflow potentialpotential ► GravityGravity & anomalies ► AeroAero && SurfaceSurface & anomalies MagneticsMagnetics

ƒƒ ValuableValuable tooltool toto looklook ► ResistivityResistivity intointo thethe subsurfacesubsurface ► UsedUsed inin OilOil && GasGas andand MiningMining explorationexploration withoutwithout thethe drillingdrilling Airborne Electromagnetics Geochem

Australia-Wide Airborne Seismic surveys Geophysical Survey 2 DrillingDrilling SupportSupport

► Drilling is reality: “Ground Truth” (proves or disproves all the theories)

► Shallow temperature probes ► Temperature gradient holes for reservoir delineation

► Tells us about lithology, fault system/structural environment, heat resource, and drilling issues ► Need to improve % of successful production wells

► $5million/well or drilling insurance

► VeryVery expensive,expensive, highhigh riskrisk portionportion ofof geothermalgeothermal development:development: NEEDNEED TOTO REDUCEREDUCE THISTHIS RISKRISK ► CostsCosts && successsuccess raterate cancan makemake oror breakbreak geothermalgeothermal explorationexploration companies:companies: MAKESMAKES INVESTORSINVESTORS WEARYWEARY ReduceReduce ProjectProject Risk!Risk! ► NotNot justjust drilling!drilling! ► ElectricityElectricity isis ““perishableperishable goodgood”” :: ttransmissionransmission cancan dictatedictate economicseconomics ► EnvironmentalEnvironmental ConcernsConcerns ► CulturalCultural IssuesIssues ► PoliticalPolitical AtmosphereAtmosphere ► PowerPower PricingPricing ► NeedNeed qualityquality geosciencegeoscience toto improveimprove oddsodds forfor geothermalgeothermal industryindustry Support:Support: NewNew GeoscientistsGeoscientists

► ““HelpHelp wantedwanted”” :: NextNext generationgeneration ofof GeoScientistsGeoScientists ► NeedNeed forfor qualifiedqualified scientistsscientists && engineersengineers inin fieldfield ofof geothermalgeothermal ► FewFew coursescourses offeredoffered worldwideworldwide (Iceland,(Iceland, Stanford,Stanford, NewNew Zealand)Zealand) ► HighHigh %% ofof experiencedexperienced researchersresearchers nearnear retirementretirement ageage ► OpportunityOpportunity toto passpass onon thethe knowledgeknowledge toto nextnext generationgeneration ► FreshFresh perspectiveperspective && newnew ideasideas JustJust thethe startstart……

► AdvancedAdvanced explorationexploration techniquestechniques ofof hydrothermalhydrothermal systemssystems (isotope(isotope analysis)analysis) ► EGSEGS fracturingfracturing researchresearch ► MicrogenerationMicrogeneration && <10MW<10MW drillingdrilling programsprograms ► PorePore spacespace policypolicy && coco--productionproduction opportunitiesopportunities ► GraniticGranitic drilldrill bitbit technologytechnology

► COCO2 heatheat mediummedium ► ReservoirReservoir analysisanalysis inin CanadianCanadian CordilleranCordilleran ► IncreasedIncreased technologytechnology transfertransfer fromfrom otherother industriesindustries GeneralGeneral EducationEducation

► WhatWhat’’ss geothermal?geothermal? Electricity?Electricity? ► AmazingAmazing renewablerenewable energyenergy resource,resource, yetyet notnot widelywidely recognizedrecognized (including(including investmentinvestment community)community) ► ResourceResource potentialpotential onlyonly primaryprimary assessmentassessment

► DifficultDifficult toto movemove forwardforward withwith explorationexploration andand developmentdevelopment

► OutreachOutreach && educationeducation forfor communitiescommunities withwith geothermalgeothermal energyenergy opportunitiesopportunities ► WorkshopsWorkshops && informationinformation availableavailable forfor decisiondecision makersmakers

HelpingHelping DevelopmentDevelopment

► Initial data collection and database

► Field research ► Geophysics

► GIS mapping

► Drilling program

► Researchers for tomorrow

► Education for public

► Continue to advance research

TAKEAWAY:TAKEAWAY: NeedNeed toto REDUCEREDUCE RISKRISK ofof projectproject developmentdevelopment toto enticeentice investmentinvestment HighHigh--TemperatureTemperature GeothermalGeothermal

►► BaseBase--loadload (>95%(>95% capacitycapacity factor)factor) ►► DomesticDomestic resourceresource ►► MatureMature andand costcost--competitivecompetitive ►► ProducesProduces nearnear zerozero GHGGHG emissionsemissions ►► SmallSmall environmentalenvironmental footprintfootprint ►► SustainableSustainable resource,resource, renewablerenewable energyenergy ►► LowestLowest longlong--termterm costcost ofof allall alternativesalternatives

QUESTIONS?QUESTIONS?

CanadianCanadian GeothermalGeothermal EnergyEnergy AssociationAssociation www.cangea.cawww.cangea.ca

CraigCraig Dunn,Dunn, P.GeolP.Geol.. EducationEducation && MembershipMembership Director,Director, CanGEACanGEA [email protected]@cangea.ca